The Tokyo stock market experienced a significant decline on August 2nd, with the Nikkei 225 index plummeting to a six-month low. The index closed at 35,909.70, down 2,216.63 points, or 5.81 percent, from the previous day's close. This marked the first time in about half a year that the index had fallen below the 36,000 level.
The steep decline was attributed to several factors, including concerns about an economic slowdown and selling to lock in profits following recent gains. The Dow Jones Industrial Average in New York had also fallen by more than 700 points on August 1st, further fueling concerns about a global economic downturn.
The Tokyo market opened sharply lower following the Dow's decline. The yen also continued to strengthen against the dollar, reaching 148 yen per dollar in the morning. The rapid appreciation of the yen has been pressuring export-related stocks.